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Ukraine's Cabinet increases expected inflation rate from 5.6 to 11.6 percent

Source : 112 Ukraine

The unemployment rate will make 9.4 percent; the average monthly payment of employees will amount to some 400 US dollars
13:39, 3 April 2020

Open source

The Cabinet released a refreshed macroeconomic forecast, in which this year's inflation rate was increased. In the previous forecast, the index was 5.6; in the new one, it is 11.6 percent.

The respective decree of the government (No.253) is released on the government portal.

According to the forecast, the unemployment rate will make 9.4 percent; the average monthly payment of employees will amount to some 400 US dollars. The nominal wage, given the inflation, will be cut by 4.5 percent in comparison with last year's index.

The National Bank of Ukraine reduced the discount rate to 10%. This was reported by the regulator's press service.

Related: Ministry of Economic Development to publish inflation data monthly

"The Board of the National Bank has decided to reduce its interest rate to 10% per annum since March 13, 2020. The National Bank is continuing its projected monetary easing in order to bring inflation back to the target range of 5% +/- 1 percentage point and to support economic growth in Ukraine in the conditions of world economy’s cooling,” the message reads.

Related: National Bank sells $350 million on interbank market to prevent hryvnia hike

According to NBU, the discount rate forecast has been lowered to 7% by the end of 2020. The main assumption, which the regulator takes into account, is the continuation of cooperation with the IMF. Risks include the spread of coronavirus, which could potentially lead to a recession in the world economy and a significant drop in the economic activities in Ukraine.

Related: Inflation rate in Ukraine reaches 0.2% in January

 

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